US Cumene Market Showcase an Improving Price Trend in June 2022
- 04-Jul-2022 3:28 PM
- Journalist: Patrick Knight
The US market has been witnessing an uptrend in Cumene prices. The rising upstream crude values, supply chain disruptions, and the current grids support the Cumene price hike. Moreover, the increasing demand from the downstream sectors and the China-US trade conflict also influence the Cumene market.
The US market’s sanctions on Russian imports due to the Russia-Ukraine conflict led to ongoing supply chain disruptions. The limited availability of the upstream crude affected the production of feedstock Benzene, further slowing down Cumene’s manufacturing. The skyrocketing feedstock Benzene prices are owing to the increasing demand from the Styrene plants, which have resumed recently is inflating the Cumene price trend.
However, the electricity grid troubles are creating an unexpected situation triggering the oil supply disruption in the domestic market. This summer, the power companies have been witnessing a supply crisis as they are struggling to reach the demand due to the threat caused by climate change. Thus, this electricity disruption put the oil manufacturers under pressure, ushering in limited product supply. Therefore, the aforementioned reasons have been boosting the Cumene market.
The ongoing US-China trade war is also influencing Cumene and its derivatives pricing. The US government is banning the import of goods from Xinjiang due to forced labor. When interviewed, one of the US-based traders quoted that the current sanction on Xianjing’s imports will affect the trade between US and China also the existing US-China war might get triggered.
In addition, the surging demand for Cumene from the downstream derivative acetone, phenol, phenolic resin, and other derivative markets is pushing Cumene prices. The Phenolic market is witnessing growth coupled with healthy buying sentiments in the domestic market. Hence, the healthy purchase and strong consumer demand are inflating Cumene pricing.
As predicted by the ChemAnalyst database, Cumene prices might see a continuous uptrend in the US domestic market. The exported charges and the freight costs could increase, influencing the Cumene market. Raw material prices might remain high along with the strong demand from the local and international markets.